Measures (solutions)   to improve the Terms of trade in developing countries

bb

1. Promote export diversification including the production of industrial products   so as to avoid over flooding of the world markets by similar products produced by developing   countries.  This helps to increase the export prices hence favourable   terms of trade.
2. Embrace regional integration and   economic    co-operation     so   as   to promote    trade    among developing countries.  This can help them   to avoid being exploited by developed countries.
3. Adopt technological development in order to improve on quality and quantity of exports. This can help to increase on the export prices.
4. Formation of strong commodity  associations  so as to  jointly   bargain  for fair prices  for their exports  on the world  market.  For example coffee producers Association   (CPA).
5. Adopt favorable policies like subsidization of local producers and privatization of the inefficient parastatals.        This can help to improve   on quality   and quantity   of their exports   hence   favourable terms of trade
6. Carry out market research and advertisement as a way of improving on the marketability and prices of their exports.
7. Adopt import substitution industrial strategy
8. Stabilize exchange rate
9. Negotiate for removal of trade barriers in export market